Government announces significant changes to superannuation concessional tax

By Rebecca Edwards / 28 February 2023
1 min.
Worthwhile read for: Individuals, families, SMSF members, trustees, retirees

The Prime Minister has confirmed that concessional tax rates will change from 15% to 30% for people with more than $3 million of superannuation. While this change will not come into force until 2025-2026, it will impact around 80,000 people.

These changes will not impact those with superannuation account balances under $3 million. The average superannuation balance is approximately $150,000 and the changes are expected to affect about 0.5% of people with superannuation.

The introduction of these changes will, according to Treasurer Jim Chalmers, save about $2 billion to the budget. In figures released today, the government claims that an estimated $51 billion is lost in revenue as a result of the current concessional rate of 15%.

Further, the Treasurer also noted that it was not expected that the $3 million threshold for superannuation account balances would be indexed.

If you would like to discuss these proposed changes to superannuation, contact our dedicated Superannuation team.

Key Contacts
Rebecca Edwards
Special Counsel
Rebecca Edwards is a Special Counsel in our Estates and Succession and Self-Managed Superannuation teams.

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